The number of letters sent through postal services has plummeted in recent years as consumers embrace technology.
Once dominated by the state-owned Post Office, the industry has become highly competitive, with new entrants offering better services and faster turnaround.
Technological advancement has made it easier to exchange information electronically instead of through physical letters.
The South African Post Office has been in business rescue since July 2023 and has been closing down branches, resulting in hundreds of job losses.
According to a "State of the ICT Sector" report recently released by the Independent Communications Authority of South Africa (Icasa), the total volume of letter delivery services plummeted from 250.8-million pieces in 2023 to just 152.9-million in 2024.
This sharp decline is attributed to a substantial reduction in both domestic and international outbound services, which saw a drop from 246.5-million in 2023 to 147.6-million in 2024, indicating a shift in consumer behaviour and possibly the effects of evolving communication technologies.
Over a five-year period, total letter delivery services experienced a negative compound annual growth rate (CAGR) of 19.643%. Domestic or local volume services saw a decline with a CAGR of 20.13%, while international mail volumes showed modest growth, with a CAGR of 6.87%, reflecting an increase in international delivery.
In 2024, there was a decline in the number of physical addresses, post office boxes and rented post office boxes because of the rising popularity of alternative methods such as email for receiving statements and other communications, the report states.
According to Icasa, the convenience and efficiency of electronic communication has led to a shift away from traditional mail services with fewer people and businesses relying on physical addresses and post boxes for their correspondence needs.
“This trend reflects a broader transition towards digital solutions in modern communication, marking a significant change in consumer behaviour and preferences,” the report states.
The total number of parcel delivery services underwent a significant decline, dropping from 17.6-million in 2023 to just 3.3-million in 2024
Icasa, which regulates the postal service sector, received comments from companies such as Night Wing Couriers, Pathteq QPL Logistics, South African Post Office, Postnet South Africa, RC Couriers, Royale International and The Courier Guy.
Courier companies have experienced significant growth due to the rise of e-commerce, which has driven the demand for faster, more reliable delivery services. “These operators have capitalised on technological advancements, expanding their logistics networks and offering a wide range of services, from same-day deliveries to international shipping,” Icasa said.
Postal services revenue decreased 22.4% to R4.4bn in 2024. This downward trend highlights the challenges faced by traditional postal services, taking into account the reduced mail volumes as digital communication takes precedence, and competition from more agile couriers grows.
“The increasing demand for faster and more efficient parcel delivery, driven by the growth of e-commerce, has also placed pressure on traditional postal services,” Icasa said.
The total number of parcel delivery services underwent a significant decline, dropping from 17.6-million in 2023 to just 3.3-million in 2024. This sharp decrease raises questions about the factors contributing to such a drastic reduction. Economic shifts, changes in consumer behaviour and advancements in technology may have played pivotal roles in reshaping the landscape of parcel delivery services during this period.
According to the report, in 2023 total postal services sector employment was 15,303, but decreased to 9,570 in 2024 — a loss of 5,733 jobs.
“The postal sector continues to face significant revenue and employment challenges as digital alternatives become more popular. Investments in modern logistics and technological advancements will be crucial for sustaining growth and adapting to shifting consumer preferences,” Icasa said.
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